Cardinal''s Namdini Ore Reserve Now 5.1 Moz

ID: 1548242
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(PresseBox) - Cardinal Resources Limited (ASX/TSX: CDV) (?Cardinal? or ?the Company? - http://www.commodity-tv.net/c/search_adv/?v=298772) is pleased to announce an optimised Ore Reserve estimate for the Namdini Gold Project (?Namdini?) in Ghana, West Africa.

Highlights:

1 Million ounces Proved and Probable Ore Reserve estimate from 138.6 Mt (at) 1.13 g/t Au (0.5 g/t Au cut-off)

USD $1,225 gold price optimised pit selected for the Life of Mine design

9 : 1 Life of Mine Strip Ratio

80% of the 6.5 Moz Measured and Indicated Mineral Resource converted to Proven and Probable Ore Reserves

Cardinal?s Chief Executive Officer / Managing Director, Archie Koimtsidis stated:

?We are extremely pleased that our optimisation of pit designs, wall angles and mining schedules, has upgraded the company?s Life of Mine Ore Reserve position to 5.1 Moz, up from 4.8 Moz, reinforcing the Namdini gold deposit as of one of the largest undeveloped gold discoveries of the past decade.

?We?re very fortunate to have a significant higher grade portion within the Life of Mine Ore Reserve starting essentially at surface. This allows for a rapid capital payback during production of the First Stage Pit. It is anticipated that the First Stage Pit will see approximately 1 Million ounces of gold produced over an approximate three-year period at an expected lower strip ratio and a higher average head grade of approximately 1.3 g/t gold based on a process plant throughput of 9.5 Million tonnes per annum.

?We are confident that this optimised Life of Mine Ore Reserve, can deliver strengthened financial results within the Feasibility Study which is rapidly advancing to completion. Given the projects large Ore Reserve, low strip ratio, high conversion of the Mineral Resource and rapid payback from the anticipated higher grade, lower strip ratio of the First Stage Pit, it is expected that the company will have access to attractive project finance to achieve the best outcome for shareholders.?



MINERAL RESOURCE

The Mineral Resource incorporates the results from all the resource drilling to date comprising 175 HQ diamond core holes and 151 RC drill holes totalling 87,140 metres.

Reverse circulation drilling (nominally 5

Diamond drilling was HQ in both weathered and fresh rock.

The resource drilling comprises east-west trending traverses of easterly inclined holes.

Tables 1 and 2 highlight the Mineral Resource estimation reported at a 0.5 g/t Au cut-off grade.Institute of Mining, Metallurgy and Petroleum ?CIM Definition Standards for Mineral Resources and Mineral Reserves? (CIM, 2014) and the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2012).

All figures in Table 2 and 3 have been rounded to reflect the relative precision of the estimates and to include rounding errors.

MINERAL RESOURCE ESTIMATE

The following information summarizes key parameters relating to the Mineral Resource estimation:

Geological and structural modelling: Logging, interpretation and modelling were undertaken by Cardinal Resources? technical staff and specialist structural consultants Orefind Pty Ltd.

Survey Control: Drill hole collars were surveyed using differential GPS (DGPS), with most diamond holes and deeper RC holes down hole surveyed at intervals of generally around 30 metres using electronic multi-shot and gyroscopic equipment.

Bulk density data: Resource data acquisition included routine immersion measurements of bulk densities for samples of diamond core. The bulk density database for the Mineral Resource estimate comprises 11,047 measurements. Bulk densities were assigned to the estimate by rock type and weathering zone. The large majority of the Namdini deposit is fresh rock. Assigned bulk densities vary from 2.00 tonnes per cubic metre (t/m3) for strongly weathered metavolcanic to 2.82 for fresh diorite and metasediments.

Resource Estimation: MPR Geological Consultants Pty Ltd (?MPR?) (QP/CP Mr. Nicolas Johnson) estimated recoverable Mineral Resources for Namdini using Multiple Indicator Kriging (?MIK?) with block support adjustment, a method that has been demonstrated to provide reliable estimates of recoverable open pit resources in gold deposits of diverse geological styles. The mineralized domain used for the current study was interpreted by MPR and Cardinal geologists on the basis of two metre down-hole composited gold grades and captures zones of continuous mineralization with composite grades of greater than nominally 0.1 g/t Au.ithout application of additional mining dilution or mining recovery factors.

The Mineral Resource classification considered the quality of the data collected (geology, survey and assaying data), the density of data, the confidence in the geological models and mineralization model and grade estimation quality. Mineralization tested by generally 50 by 50 metres and closer spaced drilling is assigned to the Indicated category, with estimates for zones with more closely spaced drilling classified as Measured. Estimates for panels not informed consistently 50 by 50 metres drilling are assigned to the Inferred category.

Variance Adjustment: The resource estimates include a variance adjustment to give estimates of recoverable resources at various gold cut off grades. The variance adjustments were applied using the direct lognormal method. The variance adjustment factors reflect comparatively large scale, open pit mining consistent with Cardinal?s perception of potential mining scenarios. The variance adjustment factors were estimated from the variogram model for gold grades assuming mining selectivity of 5 metres by 10 metres by 2.5 metres (across strike, strike, vertical) with high quality grade control sampling on an 8 by 12 by 1.25 metre pattern. The variance adjustments can reasonably be expected to provide appropriately reliable estimates of potential mining outcomes at the assumed selectivity, without application of additional mining dilution or mining recovery factors.

Constraining Pit Shell: To provide estimates with reasonable prospects for eventual economic extraction, Mineral Resources are reported within an optimized pit shell produced by Golder Associates. The optimization parameters reflect a large scale conventional open pit operation and a gold price of USD $1,950 / oz

MINING

Ore Reserves were estimated for the Namdini Gold Project by Golder Associates, which is summarised in Table 4. The total Probable Ore Reserve is estimated at 138.6 Mt at 1.13 g/t Au with a contained gold content of 5.1 Moz.

The Ore Reserve for the Project is reported according to the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, JORC Code 2012 and Canadian Institute of Mining, Metallurgy and Petroleum ?CIM Definition Standards for Mineral Resources and Mineral Reserves? (CIM, 2014).

Table 4 Notes:

The Ore Reserve conforms with and uses JORC Code 2012 recommendations and Canadian Institute of Mining, Metallurgy and Petroleum ?CIM Definition Standards for Mineral Resources and Mineral Reserves? (CIM, 2014).

The Ore Reserve was evaluated using a gold price of USD $1,300 / oz with USD $1,225 / oz optimised pit chosen for Ore Reserve pit design to maximise cash flow.

The Ore Reserve was evaluated using an average cut?off grade of 0.5 g/t Au.

Ore block grade and tonnage dilution was incorporated through the use of an MIK recoverable resource estimation model which was demonstrated to incorporate an expected level of equivalent ore loss and dilution for the scale of mining envisaged.

All figures are rounded to reflect appropriate levels of confidence. Apparent differences may occur due to

The mine design and Ore Reserve estimate is based on the revised Mineral Resource model.

Trial open pit optimisations were run in Whittle 4XTM software to define the base of potentially economic material.

The Ore Reserve reported in this announcement is a sub-set of the Measured and Indicated Mineral Resource which can be extracted from the mine and processed with an economically acceptable outcome.

Mining of the Namdini project will use conventional open pit mining equipment.

Mining will be carried out using staged cut?backs with four identified stages incorporated within the LOM final pit.

Oxide ore will be stockpiled and fed into the process plant towards the end of the mine life. Waste rock will be stockpiled separately on the western side of the pit.

The metallurgical work carried out to date indicates that gold can be satisfactorily recovered from Namdini ore using conventional flotation, regrind and Carbon In Leach (CIL) cyanidation techniques.

MINING FACTORS

The in-situ deposit Mineral Resource Model is the basis for the mining model used for the Life of Mine (LOM) pit planning and assessment reporting.

Mining will consist of a conventional hydraulic shovel operation typically using 400 tonne class excavators in a face-shovel configuration and 130 tonne class rigid body dump trucks hauling on designed access roads.

Mining is proposed on 3 to 4 metres flitches in the ore, within 10 metre benches.

A gold cut-off grade of 0.5 g/t Au was applied to the mineralised material.

For purposes of selecting the optimum Whittle pit for mine design purposes, Golder Associates estimated a mining base surface cost of USD $2.86 / t of rock mined based on experience with similar mining operations in the region, which includes grade control sampling, laboratory assay analysis and supervision costs. &A cost were estimated at USD $14.30 / t milled plus an additional USD $1.50 / t allowance for stockpile reclaim ? all tonnes were assumed to be on a dry basis.

Once the optimum selected Whittle pit was selected and mine design completed, a detailed mining movement schedule was supplied to two prospective mining contract companies to assist with the provision of a detailed mining cost estimate.

Metallurgical test work as reported in the pre-feasibility study, was used to estimate the recoverable fraction from the Oxide, Transition and Fresh ore components, with gold grade and proportion of the block at varying MIK cut-off points coded in the block model.

Using the identified marginal Cut-off Grade, the proportion of ore per parcel and gold grade above the Cut-off Grade were included within the mining model to allow export of the parcelled (ore + waste) blocks to the pit optimiser for open pit optimisation.

A minimum mining width of 80 metres was assumed. ing contractor with the mining performed on an outsourced basis.

Grade control will be based on sampling from reverse circulation drilling spaced at approximately 10mE by 15mN with samples taken at 1.5 metre intervals downhole.

GEOTECHNICAL PARAMETERS

In support of the mine design, Golder Associates carried out a study of existing geotechnical information, reviewed information on mineral resource estimates, conducted a detailed pit geotechnical drilling campaign supervised by a site visit by a senior Golder Associates engineer and gathered detailed rotary core logging data from selected drill locations within the Namdini project area.

The Life of Mine pit design considers slope performance based on models developed from laboratory results of sampled drill core.

Based on geotechnical and hydrogeological considerations from site investigations at the project area, the design sectors were designated around Namdini Pit.

Inter-ramps (bench stacks) in slightly weathered to fresh rock should consist of four benches.

PIT OPTIMISATIONS

Pit optimisations were completed using the Lerchs-Grossman (LG) algorithm in Whittle 4XTM software to calculate the optimal pit at specified input parameters that were determined prior to the study.

MINE DESIGN CRITERIA

The mine design criteria were developed to allow for development and assessment of designs to provide a plant feed rate of 9.5 Mtpa.

The maximum mining movement has allowed for a strip ratio of up to 2 : 1 in order that the initial optimisations are not ?mining-limited?.

The pit design considered the geotechnical requirements for berms, face angle batter and catch-berms for the lithology within the block model to establish the engineered pit design in which the Ore Reserves are contained.

The pit was designed with four stages, the initial stage being for early access to the higher-grade ore near the surface.

The pit designs have targeted the maximum discounted value pit shell at a USD $1,225 / oz gold price.ge costs and thus improves the overall value.

Stage design was largely focused on targeting maximum value change points within practical mining constraint limits, such as the minimum mining width for the pushbacks.

CAUTIONARY STATEMENT

The term ?Ore Reserve? is synonymous with the term ?Mineral Reserve? as used by Canadian National Instrument 43-101 ?Standards of Disclosure for Mineral Projects? (NI 43-101, 2014) and conforms with CIM (2014).

The Company advises that the Proved and Probable Ore Reserve provides 100% of the total tonnage and 100% of the total gold metal underpinning the forecast production target and financial projections.

The Company has concluded that it has a reasonable basis for providing forward looking statements included in this announcement.

The Mineral Resource is prepared in accordance with both the Canadian Institute of Mining, Metallurgy and Petroleum ?CIM Definition Standards for Mineral Resources and Mineral Reserves? (CIM, 2014) and the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves (the JORC Code 2012).

ABOUT CARDINAL

Cardinal Resources Limited (ASX / TSX : CDV) is a West African gold?focused exploration and development Company which holds interests in tenements within Ghana, West Africa.

The Company is focused on the development of the Namdini Project through a resource expansion drilling programme and is now advancing the feasibility study supported by additional multi-disciplinary engineering activities.

Exploration programmes are also underway at the Company?s Bolgatanga (Northern Ghana) and Subranum (Southern Ghana) Projects.

Competent Person / Qualified Person Statement

All production targets for the Namdini Gold Mine referred to in this report are underpinned by estimated Mineral Resources and Ore Reserves which were prepared by competent persons and qualified persons in accordance with the requirements of the JORC Code and National Instrument 43-101- Standards of Disclosure for Mineral Projects (?NI43-101?), respectively.

The information in this press release that relates to Namdini Ore Reserves and mining studies is based on information compiled and reviewed by Mr Glenn Turnbull, a Competent Person who is a Chartered Engineer and Member of the Australasian Institute of Mining and Metallurgy and a full-time employee of Golder Associates. Turnbull has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The information in this press release that relates to Namdini Mineral Resources is based on information compiled and reviewed by Mr Nicolas Johnson, a Competent Person who is a Member of the Australian Institute of Geoscientists and a full-time employee of MPR Geological Consultants Pty Ltd.Johnson has no economic, financial or pecuniary interest in the company and consents to the inclusion in this report of the matters based on his information in the form and context in which it appears.

The scientific and technical information contained in this press release is based on information compiled and reviewed by Mr Richard Bray, a Competent Person who is a Registered Professional Geologist with the Australian Institute of Geoscientists and a full-time employee of Cardinal Resources Ltd.

Disclaimer

This ASX / TSX press release has been prepared by Cardinal Resources Limited (ABN: 56 147 325 620) (?Cardinal? or ?the Company?).

This press release contains summary information about Cardinal, its subsidiaries and their activities, which is current as at the date of this press release.

By its very nature exploration for minerals is a high?risk business and is not suitable for certain investors.stment in Cardinal including but not limited to economic conditions, stock market fluctuations, gold price movements, regional infrastructure constraints, timing of approvals from relevant authorities, regulatory risks, operational risks and reliance on key personnel and foreign currency fluctuations.

Except for statutory liability which cannot be excluded and subject to applicable law, each of Cardinal?s officers, employees and advisors expressly disclaim any responsibility for the accuracy or completeness of the material contained in this press release and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this Announcement or any error or omission here from. Except as required by applicable law, the Company is under no obligation to update any person regarding any inaccuracy, omission or change in information in this press release or any other information made available to a person nor any obligation to furnish the person with any further information.

Forward?looking statements

Certain statements contained in this press release, including information as to the future financial or operating performance of Cardinal and its projects may also include statements which are ?forward?looking statements? that may include, amongst other things, statements regarding targets, anticipated timing of the feasibility study (FS) on the Namdini project, estimates and assumptions in respect of mineral resources and anticipated grades and recovery rates, production and prices, recovery costs and results, capital expenditures and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions. These ?forward ? looking statements? are necessarily based upon a number of estimates and assumptions that, while considered reasonable by Cardinal, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies and involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward?looking statements.

Cardinal disclaims any intent or obligation to update publicly or release any revisions to any forward?looking statements, whether as a result of new information, future events, circumstances or results or otherwise after today?s date or to reflect the occurrence of unanticipated events, other than required by the Corporations Act and ASX and TSX Listing Rules. The words ?believe?, ?expect?, ?anticipate?, ?indicate?, ?contemplate?, ?target?, ?plan?, ?intends?, ?continue?, ?budget?, ?estimate?, ?may?, ?will?, ?schedule? and similar expressions identify forward?looking statements.

All forward?looking statements made in this press release are qualified by the foregoing cautionary statements. Investors are cautioned that forward?looking statements are not guarantees of future performance and accordingly investors are cautioned not to put undue reliance on forward?looking statements due to the inherent uncertainty therein.



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Date: 04/03/2019 - 06:02
Language: English
News-ID 1548242
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